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					Guidelines for Calculating Salaries for FY11 Budget Entry:
Attached is a page of calculations for FY11 salary, incorporating the 27th pay period, the one-time 1.15%
pay reduction or furlough and the annual recurring increases. There is an example for 12 mo. Faculty or
P&A employees, for 9 mo. B-based Faculty and for Civil Service/Bargaining Unit employees. These
calculations are meant as examples for determining the salary expense to budget for each employee.
Unique knowledge you may have regarding the percentage of the annual increase or other aspects of pay
should be incorporated on an individual basis as appropriate.
The Position Budgeting tool was not designed to automatically calculate the unique circumstances we are
implementing for FY11. It is possible, however, to download the line item detail from the distributions
page in Position Budgeting to excel to aid in the calculations. If you do that, you will have a listing of
employees and their current fiscal year salary. You can then sort the lines into relevant groups of
employees (faculty/P&A, CSBU etc.) and add columns to run the calculations that are on the attached
sheet. The final salary results by employee will then need to be entered into the distribution page in

Special items of note related to calculating the FY11 salary:
1) if you know someone will be taking the voluntary furlough days, that information can be factored
into the calculation of the salary expense for FY11 by adjusting the relevant columns on the attached (one-
time reductions)
2) increases for promotions and retentions should be added to the FY10 base before any other
calculations– the 2% annualthose changes to column A on is for illustrative purposes only – you should
3) again are done – add increase used on the attached the attached
use whatever unique information you have regarding merit increases for individuals when you do your
calculations

Special items of note on implementation of the pay plans:

           1.15% one-time reduction be faculty and P&A employees (and the corresponding 2.3%
4) the compensation memos will for distributed from HR on approximately April 9
5)
reduction for the 85 executives) will be calculated centrally and automated by HRMS – units will not
have to manually enter this change
6) units will be responsible for determining and entering the annual merit increases, as well as any
special increases related link to a list of or retentions, into payroll for FY11 by the one-time 1.15% (or
7) HR will provide a to promotions earnings codes that will be impacted
2.3%)the recurring base for FY12 – factoring in a full year cost of any merit increase implemented half
8)     reductions
way through FY11 – will be calculated centrally and automatically inserted as the starting point for FY12
salaries
Finally, as you balance your overall budget for FY11, please remember that you must plan to cover an
entire fiscal year cost of the annual general compensation increases (the general 2%) even though the
expense you are calculating per the attached guidance reflects only half the year cost at that increased rate
for some employees. Think about it as though you have to reallocate or use revenue increases to cover
the full annual cost of the general 2% increase, but for one year only (FY11), you will spend a portion of
those available resources on something else (27th pay period or other nonrecurring expenses). If you plan
appropriately, as you begin FY12 your base budget will have been adjusted to cover the base recurring
          Template - Calculation of Salary Increases for FY11

12 mo. Faculty/P&A - Calculation of FY11 Salary

               First Half of the Year (includes 27th pay period cost)                                         Second Half of the Year


  1       A                   B               C                   D                           E           F           G                    H               I           J              K
  2                      Less One-                             15 Pay                       Merit    Increased   Less One-                             12 Pay                       FY11
  3                     Time 1.15%                            Periods*                  Increase on   base for  Time 1.15%                            Periods*        FY11     Incremental
  4     FY10             Reduction                           at this rate                FY10 Base second 6 mo. Reduction                            at this rate     Cost       Increase
  5     Base            (A * -.0115)                         (C/26*15)                    (A * 2%)     (A + E)  (F * -.0115)                         (H/26*12)       (D + I)       (J - A)
  6
  7     70,000                 (805) =       69,195                         39,920           1,400         71,400            (821) =      70,579          32,575     72,495         2,495
  8
  9   So: Cost of 27th pay period      =      2,692            (A/26)
 10       Cost of annual increase      =        646          (E/26*12)                  FY12 recurring base is $71,400, though
 11       Savings from 1.15%           =       (843)    (B/26*15)+(G/26*12)
 12   Total Incremental change                2,495
 13                                                                                     *Reflects implementation of the annual increase beginning Jan. 3, 2011
 14
 15
 16   9 Mo. Faculty/P&A - Calculation of FY11 Salary
 17
 18                            First Half of the Year                                                         Second Half of the Year
 19
 20
 21       A                   B               C                    D                          E           F           G                    H                I          J              K
 22                      Less One-                              11 Pay                      Merit    Increased   Less One-                             8.5 Pay                      FY11
 23                     Time 1.15%                             Periods                  Increase on   base for  Time 1.15%                             Periods        FY11     Incremental
 24     FY10             Reduction                            at this rate               FY10 Base second 6 mo. Reduction                             at this rate    Cost       Increase
 25    B-Base           (A * -.0115)                         (C/19.5*11)                  (A * 2%)     (A + E)  (F * -.0115)                         (H/19.5*8.5)    (D + I)       (J - A)
 26
 27     70,000                 (805) =       69,195                         39,033           1,400         71,400            (821) =      70,579          30,765     69,798          (202)
 28
 29   So: Cost of 27th pay period      =          0
 30       Cost of annual increase      =        610        (E/19.5*8.5)                 FY12 recurring base is $71,400, though
 31       Savings from 1.15%           =       (812) (B/19.5*11)+(G/19.5*8.5)
 32   Total Incremental change                 (202)
 33
 34
 35
 36   CSBU
 37
 38       A                   B               C                    D                         E              F            G                   H
 39                        Annual                       Less One Time 1.15%                            Plus one                            FY11
 40                     Increase on        Increased    Reduction (equivalent                        additional Pay    FY11            Incremental
 41     FY10             FY10 Base            Base        to 3 day furlough)                            period         Cost              Increase
 42     Base              (A * 2%)           (A + B)         (C * -.0115)                               (E/26)        (E + F)             (G - A)
 43
 44     70,000                1,400          71,400                           (821) =       70,579          2,715        73,293            3,293
 45
 46   So: Cost of 27th pay period      =      2,715               F
 47       Cost of annual increase      =      1,400               B                     FY12 recurring base is $71,400
 48       Savings from furlough        =       (821)              D
 49   Total Incremental change                3,293

				
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posted:11/16/2011
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